Genome Blog/articles/ iGaming payment solutions for online casinos: how to choose in 2024?
Mar. 25, 2024
iGaming payment solutions for online casinos: how to choose in 2024?
The iGaming industry is dynamic and faces many struggles on the path of its development. From emerging iGaming technologies to common updates in laws and regulations, online casinos have a lot on their plate. Thus, it is crucial to use a gambling payment gateway and a gambling payment processor that are up for the challenge.
The crucial role of a reliable payment solution in iGaming
The iGaming industry is a broad term that encompasses multiple types of businesses, such as online gambling, internet gaming, online casinos, sports betting platforms, and more.
It is one of the most over-regulated business sectors in terms of law and taxes. For instance, in France, the taxation for online operators based on GGR is 37,7% GGR for racing, 55,2% for sports betting, or 44,5% GGR for retail sports betting.
Meanwhile, in Germany, the taxation is based on the percentage of the stakes: from 2021, the government set taxes for online slots and online poker at 5,3% of turnover.
Countries have different sets of rules regarding the industry and gambling sites’ regulations. Online gambling and iGaming businesses need to use a reliable and advanced gambling payment gateway and gambling payment processors that adhere to major regulations and offer advanced features and tools.
Exploring popular online casino payment methods
Access to a plethora of payment methods is easily one of the most important features gambling payment processors, and a payment gateway can provide. Let’s take a look at the best online gambling payment methods.
Credit and debit cards
Debit and credit cards are the primary payment options that many gambling payment processors offer as casino payment solutions. Although recent years saw an emergence of multiple alternative payment methods, the impact of bank cards cannot be dismissed. After all, the cards have established a long-lasting reputation and are easy to obtain and use.
Debit and credit cards play a significant role in online gambling payments due to several reasons:
First, their widespread acceptance: debit and credit cards are widely accepted worldwide, including many online casinos.
Ease of use: Using cards for gambling payments is straightforward. Clients enter payment details and complete the transaction, making it a simple process for deposits and withdrawals.
Speed: Deposits you make through a credit or debit card are usually instantaneous, allowing players to access online gambling without delay.
Security Measures: Major card providers have robust security measures in place to protect users from fraud. It can include encryption, fraud monitoring, and buyer protection programs that help users in case of unauthorized transactions.
Overall, banking cards remain a convenient and widely used payment method that a payment provider/payment gateway can offer for an online payment, but users should be aware of associated fees and limitations specific to their situation and location.
E-wallets
E-wallets hold significant importance in the iGaming and online gambling industry, growing more popular among clients and gambling payment processor companies. They offer two major benefits for online casinos:
Online gambling customers can top-up their accounts seamlessly without entering extensive financial details for each online transaction.
The most notable difference compared to banking cards is your anonymity: digital wallets provide an opportunity to make transactions without directly sharing your bank or card details with online casinos, enhancing privacy and reducing the risk of fraud in some way.
An e-wallet is an intermediary between the player’s financial information and online casinos, reducing the risk of exposing sensitive data during gambling payments.
Speed and Efficiency: One of the key features of e-wallets is quick and efficient transactions. Withdrawals to e-wallets tend to be faster compared to other methods, reducing the waiting time for players to access their winnings.
Global Accessibility: Many e-wallet services are accessible worldwide, allowing players from different countries to use them for iGaming transactions. This payment method also simplifies mobile payments.
User-friendly: They often have intuitive interfaces and mobile apps, enabling online gambling players to manage their funds easily, track transactions, and transfer money between accounts.
Despite these advantages, some e-wallets may charge fees for transactions, currency conversions, or inactivity.
A bank transfer remains a significant and widely accepted payment method offered by gambling payment processors for both deposits and withdrawals.
Bank transfers are secure thanks to their direct connection with a user’s bank account. It is a way-to-go method if you need to handle a large transaction.
Bank transfers are accepted almost universally. They are easy to instruct and schedule.
Such transfers are usually in line with financial regulations, making them a compliant method for online gambling transactions in regions where regulations are strict.
However, in the context of iGaming, gambling payments may lack speed due to processing times or limitations due to legal or regulatory reasons.
Cryptocurrencies
One of the main reasons cryptocurrency payment options remain popular is the anonymity it offers. Some clients prefer not to reveal any personal information when using gambling services. Cryptocurrency can also be very helpful in that regard, as such transactions don’t reveal personal data.
Another benefit is that they don’t require intermediaries. This means that this payment method doesn’t require the involvement of financial institutions, as cryptocurrencies operate on a decentralized network.
For some, cryptocurrencies are one of the best casino payment methods because of the fees charged. As such, online gambling payments often have lower rates than traditional banking methods.
However, cryptocurrencies have downsides. For one, it is difficult to regulate them. Thus, your online casino account can have troubles. Not to mention that, in recent years, some scammers have used the cryptocurrency popularity wave to get rich quickly and pull the rug under coin holders.
Another issue is volatility. The value of a cryptocurrency can fluctuate significantly within short periods, impacting the value of player balances and affecting the stability of the online gambling platform’s financial operations.
Prepaid cards
A prepaid debit card offers yet another convenient and secure alternative for gambling payments.
Some of these cards provide users with a preloaded limit, allowing clients to control their spending, which avid players especially appreciate. Clients can only spend the amount loaded onto the card, saving their budget and staying within it.
Prepaid cards are easy to acquire and use. Clients can purchase them from various retail outlets or online, load them with funds, and use them for online payments.
The cards are often accessible to a wide range of users, including those without a bank account or those facing restrictions on other casino payment methods due to location or financial history.
Another aspect is anonymity and security. Prepaid cards allow users to make deposits without sharing personal banking information or card details, enhancing anonymity and reducing the risk of fraud.
On the other hand, a prepaid card may come with activation, reloading, or transaction charges. These charges can vary depending on the prepaid card issuer and impact the overall cost of using prepaid cards. Thus, it is important to use other payment methods as well.
Understanding payment gateways in iGaming transactions
Now that we have established the best payment methods let’s cover how a gambling payment gateway works to help you make an informed decision.
What are gambling payment gateways?
At its core, the main purpose of the gambling payment gateway is the same as that of regular payment gateways for e-commerce, SaaS, or other businesses. It is a financial solution that allows secure payment information exchange between a client’s bank and a business. Payment gateways encrypt the payment data they receive from customers and redirect it to a payment processor that handles the transaction process afterward.
However, differences also exist. The iGaming payment gateway works exclusively with companies from this industry. The demand for these specific payment gateways exists because regular payment gateways usually don’t handle iGaming transactions due to their high-risk nature. Thus, a valid iGaming payment gateway for online gambling must possess the following qualities:
Comply with all laws and regulations necessary to process gambling payments;
Be able to handle massive website traffic;
Be able to process high transaction volumes at once;
Have advanced, regularly updated security and anti-fraud solutions in place.
Can payment gateways enhance the gambling experience?
Having a proper online gambling/online casinos payment gateway enhances many processes for the iGaming company.
Such a payment gateway makes clients’ experiences more seamless. Overall, gambling payment processors can handle a higher volume of transactions and do so in mere seconds. It allows for faster deposits and withdrawals, and no delays will interrupt the players’ fun.
Online casinos can access relevant payment methods. Such payment gateways understand the most widely used payment methods for the iGaming industry and have integrations with them. It is always preferable to give clients a wide variety of payment options to broaden your clientele.
Prioritization of security. To work with iGaming businesses, gambling payment processors have to undergo many processes to ensure their compliance and regulation. Gambling payment processors also often offer additional tools for online casinos that allow fraud monitoring, chargeback ratio reduction, risk mitigation, and more.
Optimized payment pages. To maintain brand recognition, iGaming businesses need customizable and adaptable payment pages that can be used on websites and apps. Finding a gambling payment gateway and merchant account that can provide such versatility is a must.
In the meantime, you can explore what financial services Genome has to offer for your iGaming business! We are an Electronic Money Institution licensed and supervised by the Bank of Lithuania, providing reliable and secure services. Genome operates online and you can access it on your PC, laptop, or mobile devices.
Genome’s services are available online – from your office or home!
Start a dedicated business account online and gain access to all our tailor-made financial services:
What to consider when choosing the payment solution for your casino site
Now that you understand why your online gambling business needs a gambling payment gateway, let us list several factors to take into account when choosing a payment processor.
Security and fraud prevention
The safety of gambling payment processors and the services they provide concerning the iGaming business must be your top priority. As for security tools, the main things to look for when choosing a payment gateway are:
1. Anti-fraud systems that allow to detect and prevent fraudulent transactions and, in turn, reduce the number of chargebacks;
2. Data tokenization, which encrypts all the sensitive payment information to prevent information leaks;
3. Real-time transaction monitoring, which helps avoid fraud by detecting suspicious activities;
4. Chargeback alerting services are used to notify merchants about chargebacks before they occur for timely refunds.
Transaction speed
It is one of the main priorities for any iGaming business and payment processors that offer such solutions. It all comes down to two things:
Following what players prefer;
The ability to process large amounts of transactions.
Regarding the first one, it is simple – you don’t want your clients to be distracted by technical issues and feel irritated by their payments not coming through. This can break the entertainment immersion for many people, making them leave your website and seek online gambling services elsewhere. The casino payment solution and payment gateway you are looking for must also be able to process a lot of transactions simultaneously and have the necessary fraud and chargeback prevention tools to avoid any disruptions in the work of your website.
Global accessibility
It is one of the most complex criteria that a gambling payment gateway/payment processor must follow to be successful. After all, they need to address 3 core needs of online casinos and other iGaming companies:
Access to multiple countries.
Compliance with regulations.
Diverse payment methods.
As an online casino, you need to thoroughly investigate if the payment processor is competent enough to satisfy these three needs.
Compliance and regulation
As mentioned before, security is crucial for iGaming businesses, and compliance with major regulations can ensure this partially. The iGaming payment processor you plan to work with must be licensed and comply with
Payment Card Industry Data Security Standard (PCI DSS);
General Data Protection Regulation (GDPR) and/or other data protection laws;
Anti-money Laundering (AML) regulations;
Regulatory requirements on gambling activities set by jurisdictions they work in;
Know Your Customer (KYC) requirements.
Cost and fees
Last but not least, you need to consider the prices for using the gambling payment processor. Usually, there are a number of charges for such services:
Account opening and maintenance fees;
Payment processing fees and associated costs;
Transfer fees;
Currency conversion;
Additional costs for chargeback/fraud prevention tools;
Additional fees for using traditional and alternative payment methods.
Note that additional fees may apply. Make sure to research the full pricing of the iGaming payment processor. Some companies, such as Genome, keep their pricing on the website, while with others, you will have to contact support for more information.
Conclusion: forging a trusted iGaming ecosystem
The gambling payment gateway you choose to use can really make or break your clients’ experience and impact your company’s growth. This is why such financial services are one of the cornerstones of your business, and Genome has all the necessary solutions for your company.
Payment solutions companies provide financial services for individuals and businesses to enable online transactions. The primary purpose of such businesses is to facilitate payment processing operations, during which their clients can accept payments for their goods and services via their chosen payment option. However, payment solution/payment processor companies can also offer other financial features to enhance the payment process. As for a gambling payment gateway, these businesses serve the same purpose but cater to the iGaming companies. Thus, they facilitate gambling, betting, online casino payments, etc.
What are the best casino payment methods?
The best payment option is subjective to the casino and its circumstances. To determine the best options, a business needs to research its clientele’s preferred payment methods and the methods available in the countries in which the casino operates. Generally, some of the popular casino payment methods are credit or debit cards, e-wallets, bank transfers, cryptocurrencies, and other payment methods.
What payment processing companies does iGaming use?
Not all payment processor/payment gateway companies work with the iGaming industry. If you are looking for a reliable provider, you can use Genome to make secure transactions. Other providers include PayPal, Skrill, Neteller, Paysafecard, etc.
